Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 4, Problem 4.16EX
Closing entries with net income
After all revenue and expense accounts have been closed at the end of t he fiscal year, Income Summary has a debit of $2,450,000 and a credit of $3,000,000. At the same date, Retained Earnings has a credit balance of $8,222,600 and Dividends has a balance of $125,000.
(A)
(B) Determine the amount of Retained. Earnings at me end of the period.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $2,450,000 and a credit of $3,000,000. At the same date, Retained Earnings has a credit balance of $8,222,600, and Dividends has a balance of $125,000.
Required:
A.
Journalize the entries required to complete the closing of the accounts on December 31. Refer to the Chart of Accounts for exact wording of account titles.
B.
Determine the amount of Retained Earnings at the end of the period.
CHART OF ACCOUNTS
General Ledger
ASSETS
11
Cash
12
Accounts Receivable
13
Prepaid Insurance
14
Supplies
15
Land
16
Building
17
Accumulated Depreciation-Building
18
Equipment
19
Accumulated Depreciation-Equipment
LIABILITIES
21
Accounts Payable
22
Salaries and Wages Payable
23
Unearned Rent
EQUITY
31
Common Stock
32
Retained Earnings
33
Dividends
34
Income Summary
REVENUE
41
Fees Earned…
Closing entries with net income After all revenue and expense accounts have been closed at the end of t he fiscal year, Income Summary has a debit of $2,450,000 and a credit of $3,000,000. At the same date, Retained Earnings has a credit balance of $8,222,600 and Dividends has a balance of $125,000.
(A) Journalize the entries required to complete the closing of the accounts.
(B) Determine the amount of Retained. Earnings at me end of the period.
Closing entries with net income
Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,885,000 and Teresa Schafer, Drawing has a balance of $770,000.
(a). Journalize the entry required to close the Teresa Schafer, Drawing account.
(b). Determine the amount of Teresa Schafer, Capital at the end of the period.
Chapter 4 Solutions
Corporate Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Describe the nature of the assets that compose the...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Why are closing entries required at the end of an...Ch. 4 - Prob. 6DQCh. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQCh. 4 - What is the natural business year?Ch. 4 - Recent fiscal years for several well-known...
Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Retained earnings statement Blake Knudson owns and...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Prob. 4.4BECh. 4 - Accounting cycle From the following list of steps...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Classifying accounts Balances for each of the...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Income statement; net loss The following revenue...Ch. 4 - Income statement FedEx Corporation had the...Ch. 4 - Retained earnings statement Climate Control...Ch. 4 - Retained earnings statement; net loss Selected...Ch. 4 - Classifying assets Identify each of the following...Ch. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Dynamic Weight Loss Co. offers...Ch. 4 - Prob. 4.13EXCh. 4 - Identifying accounts to be closed From the list...Ch. 4 - Closing entries Prior to its closing, Income...Ch. 4 - Closing entries with net income After all revenue...Ch. 4 - Closing entries with net loss Rainbow Services Co....Ch. 4 - Identifying permanent accounts Which of the...Ch. 4 - Post-closing trial balance An accountant prepared...Ch. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Prob. 4.22EXCh. 4 - Appendix 1 Completing an end-of-period spreadsheet...Ch. 4 - Prob. 4.24EXCh. 4 - Prob. 4.25EXCh. 4 - Prob. 4.26EXCh. 4 - Appendix 2 Reversing entry The following adjusting...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Adjusting and reversing entries On the...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Appendix 2 Entries posted to wages expense account...Ch. 4 - Financial statements and closing entries Lamp...Ch. 4 - Financial statements and closing entries Foxy...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - Prob. 4.3BPRCh. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - The unadjusted trial balance of PS Music as of...Ch. 4 - Kelly Pitney began her consulting business, Kelly...Ch. 4 - Continuing Company Analysis- Amazon: Working...Ch. 4 - Under Armour: Current ratio The following year-end...Ch. 4 - Prob. 4.3ADMCh. 4 - Google and Microsoft: Current ratio Google, Inc....Ch. 4 - Prob. 4.1TIFCh. 4 - Communication Your friend, Daniel Nat, recently...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- After all revenue and expenses have been closed at the end of the fiscal period ended December 31, Income Summary has a debit of 45,550 and a credit of 36,520. On the same date, D. Mau, Drawing has a debit balance of 12,000 and D. Mau, Capital had a beginning credit balance of 63,410. a. Journalize the entries to close the remaining temporary accounts. b. What is the new balance of D. Mau, Capital after closing the remaining temporary accounts? Show your calculations.arrow_forwardPreparing and Analyzing Closing Entries At December 31, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $59,800; Cost of Goods Sold, $31,400; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends (declared and paid), $5,000; Wages Expense, $8,000, and Interest Payable, $2,100. Required: Prepare the closing entries for Aulani at December 31. If an amount box does not require an entry, leave it blank. How does the closing process affect Aulani's retained earnings?arrow_forwardTwo types of closing journal entries are posted to retained earnings at year-end. These are entries to: Multiple Choice transfer revenues and expenses to retained earnings. transfer assets and liabilities to retained earnings. transfer net income (or loss) and dividends declared to retained earnings. close permanent and temporary accounts. 50 TBUR Nextarrow_forward
- Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,885,000 and Teresa Schafer, Drawing has a balance of $770,000. Required: (a) Journalize the entry required to close the Teresa Schafer, Drawing account. Refer to the Chart of Accounts for exact wording of account titles. (b) Determine the amount of Teresa Schafer, Capital at the end of the period.arrow_forwardAssume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,885,000 and Teresa Schafer, Drawing has a balance of $770,000.(a) Journalize the entry required to close the Teresa Schafer, Drawing account.(b) Determinethe amount of Teresa Schafer, Capital at the end of the period.arrow_forwardClosing Entries with Net Income Assume that the entry closing total revenues of $267,600 and total expenses of $199,700 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $310,000 and Teresa Schafer, Drawing has a balance of $26,000. a. Journalize the entry required to close the Teresa Schafer, Drawing account. If an amount box does not require an entry, leave it blank. fill in the blank 81aa79023053f98_2 fill in the blank 81aa79023053f98_3 fill in the blank 81aa79023053f98_5 fill in the blank 81aa79023053f98_6 b. Determine the amount of Teresa Schafer, Capital at the end of the period.$fill in the blank cad9ad026ff3041_1arrow_forward
- Preparing and Analyzing Closing Entries At December 31, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $63,500; Cost of Goods Sold, $33,300; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends (declared and paid), $5,000; Wages Expense, $8,000, and Interest Payable, $2,100. Required: 1. Prepare the closing entries for Aulani at December 31. If an amount box does not require an entry, leave it blank. Dec. 31 Sales Revenue Retained Earnings Dec. 31 Retained Earnings Cost of Goods Sold Interest Expense Wages Expense Dec. 31 Retained Earnings Dividends Feedback Check My Work 000 00 00 2. How does the closing process affect Aulani's retained earnings?arrow_forwardSarasota has year-end account balances of Sales Revenue $868,064, Interest Revenue $14,27O, Cost of Goods Sold $563,162, Administrative Expenses $206,310, Income Tax Expense $31,854, and Dividends $20,631. Prepare the year-end closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Debit Credit No. Account Titles and Explanationarrow_forwardCan you help me with this excercise? Preparing a classified Balance Sheet, making closing entries and preparing the post closing trial balance. Prepare an income statement for the year ended December 31, 20Y5. Answer Check Figure: Net income, $137,400 Prepare a statement of stockholders’ equity for the year ended December 31, 20Y5. During the year, common stock of $25,000 was issued. Prepare a balance sheet as of December 31, 20Y5. Based upon the end-of-period spreadsheet, journalize the closing entries. Prepare a post-closing trial balancearrow_forward
- Current Attempt in Progress Waterway has year-end account balances of Sales Revenue $811,419, Interest Revenue $ 12,690, Cost of Goods Sold $575, 593, Administrative Expenses $189,840, Income Tax Expense $31,877, and Dividends $18,984. Prepare the year-end closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)arrow_forwardAfter preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $27,000. The entry to close the income summary account will be: Multiple Choice Debit Income Summary $27,000; credit Owner Capital $27,000. Debit Owner Withdrawals $27,000; credit Income Summary $27,00. Debit Income Summary $27,000; credit Owner Withdrawals $27,000. Debit Owner Withdrawals $27,000; Credit Owner Capital $27,000. Debit Owner Capital $27,000; credit Income Summary $27,000.arrow_forwardThe F. Mercury, Capital account has a credit balance of $23,8000 before closing entries are made. If total revenues for the period are $75,200. total expenses are $55,000, and withdrawals are $12,600, what is the ending balance in the F. Mercury, Capital account after all closing entries are made? __ $11,200. __ $20,200 __ $31,400. __ S23.800. __ $44,000.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY